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Accounting & Finance Roundup: What did you miss in January 2019?

Hello, and a warm welcome to January 2019’s accounting and finance roundup. At the start of this new year, we look at some of the most impactful content from across the web.

In this edition of our roundup, we look at how to avoid being overwhelmed by technological change, and zone into different views on AI and robotics. We also look at fintech predictions for the upcoming year, and analyse why Generation Z is keen to join the accounting family.

A caveat: These are the opinions of the writers themselves. We don’t always agree with every argument presented in these articles, but we do think you’ll find the stories interesting!

Kyle Walters writes this insightful piece for Accounting Today, discussing how the rate of technological changes can overwhelm accounting firms to the point of being inefficient. But this can be dangerous, because it creates a gap between what your clients need (or expect from you) versus what you can offer. He recommends using a Japanese approach known as kaizen, which is focused on incremental gains and development..

Walters also recommends evaluating your business’s core values and who your clients are. This is how you can best implement the new technologies to best serve your clients. You can read the full article to know more about the suggestions given.

Technology is important for organisations to stay competitive, according to Paul Lin in this The CPA Journal article. AI and robots were a hot topic in the accounting industry over the past year or two. The premise behind the use of AI-powered computer software is to optimise efficiency by performing routine tasks done by office workers, such as data extraction and compilation. Human employees are better suited to the strategy and advising aspect of the firm.

But the real challenge for organisations, according to Lin, is not in the implementation of these AI-powered robots. The ability to integrate these with the human efficiencies is going to be the key to success.

In this CFO Article, a real-life finance chief, Michael Burwell, delves into the impact of robotics and AI for finance professionals. He discusses how he has seen first-hand the practical implementation of AI in day-to-day operations, as well as its impact. This is especially true for firms that are growing exponentially – which is often the aim for organisations – that rely on robots to optimise performance without compromising results.

One of the widespread applications of AI is first line of response for clients. This adds more value to the roles of accountants, as they are elevated to the level of strategic consultants. Burwell concludes by citing that the implementation of robots and AI is creating a more sophisticated workforce in the finance and accounting industry.

In this Lend Academy article by Peter Renton, he looks back on his predictions for 2018 while also outlining a brand new set of predictions for 2019. There were 7 predictions by Renton, which includes how explainable AI will hit center stage this year. Another prediction is the rise of quantum computing and how it will be embraced in finance in 2019.

Want to see the other fintech predictions by Peter Renton? Find them in the full article.

This article by Nina Hendy details a research survey conducted by the International Federation of Accountants (IFAC) on Gen Z’ers. The results of the survey provide insight into the accounting career projection within this generation. Interestingly, many Gen Z’ers are open to or have committed to pursuing a career in accountancy.

The survey participants have cited a stable career path, competitive salary and benefits, and work-life balance as the reasons why they find accounting career as appealing. You can read the full article to find more details about the result of the survey.

Cloud migration promises to offer higher efficiencies and bigger savings to an organisation. But that is not always the case in practice. In fact, there are plenty of organisations that end up spending more when they switch to cloud. What went wrong?

The article cites findings from a published report by Bain & Company’s Technology Practice. One of the sources of problems that were identified is in the actual migration process. The existing inefficiencies are transferred to the cloud without ‘rightsizing’. This means that the current inefficiencies are simply transferred to a new location. The article provides suggestions on how to overcome this issue, and more involving cloud migration.